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Keybrands - Survive and thrive in times of uncertainty

January 30, 2023

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The Ask

Established in 1997 in Lebanon, Keybrands, a family-owned manufacturing company for personal care, cosmetic goods, and detergents, was an endeavor bound for success. A decade later, Keybrands founded MTM (Maalouf Trading and Manufacturing), expanding their portfolio and diversifying their offering.

With an eye for detail and a penchant for product perfection, the Maalouf family managed to achieve high production standards and outstanding quality through years of R&D development. Their products were finally present in all modern shops and supermarkets in Lebanon and were spread across 11 countries in the MENA region.

Then 2020 happened. Hit hard by the political crisis and a novel pandemic outbreak, the Lebanese currency devalued rapidly, and imports of goods skyrocketed. Faced with a new reality and declining purchasing power, Lebanese consumers shifted to less expensive local products that maintained international standards of quality. It was a clear call for MTM to step up and grab the opportunity.

The company had the advantage of flexibility and was already ranking 3rd in the shower gel category in 2019, geared with the latest machinery and powered by expert personnel. The new aim? Become a market leader by 2022.

The Answer

For a swift production chain transformation, Keybrands collaborated with Saber Middle East to optimize production by increasing operational efficiency.

To reach this goal, we worked on three pillars:

  • Machine performance, and reducing the waste level by gathering accurate data to monitor key indicators affecting product cost and factory output
  • Stock level monitoring for the most valuable SKU
  • Storage organizing for all inventory items by creating tags to identify stock items and storage areas.

While monitoring production lines, Saber Middle East consultants also noticed that the filling process was based on the operator’s estimation and not on mechanical weighing to confirm that the filled quantity was as per the volume mentioned on the product’s label.

The filling process was mainly done through three main lines (automatic and semi-automatic). The first was used to fill personal care products, the second consisted of a simple tap without any labeler or shrink machine was used for detergents, and the third line was for mixing. Thanks to strategic adjustments, such as replacing the available four mixers of 5.4 tons per batch to 3 new mixers with a capacity of five tons each, major progress was made, increasing production output by 177 %.

The Results

Keybrands was able to steadily start the journey toward leading the local market, by implementing our suggested changes, including: waste reduction, adjusting waste generated in cost calculation, setting a reorder point for critical stock items and a safety stock level.

Thanks to an unwavering dedication and openness to change, the company proved that local manufacturers were able to introduce excellent goods that compete with international products, encouraging others to follow suit, and building sturdier industries that would eventually heal the Lebanese economy.

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